Shareholders Approve Financing for KAPCO Attock Cement Acquisition
Kot Addu Power Company Limited (KAPCO) has received shareholder approval to secure financing facilities and incur debt obligations of up to $47.5 million to support its planned acquisition of shares in Attock Cement Pakistan Limited (ACPL). The decision marks a significant step in the company’s investment strategy and corporate restructuring efforts.
The approval was granted through a special resolution passed during KAPCO’s 15th Extraordinary General Meeting (EGM), held on July 13, 2026. The resolution was adopted under Article 41(c) of the company’s Articles of Association and in accordance with the applicable provisions of the Companies Act, 2017.
KAPCO Attock Cement Acquisition Receives Shareholder Backing
The KAPCO Attock Cement acquisition proposal allows the company to obtain financing of up to $47.5 million, together with all related debt obligations required to complete the transaction. The approved financing package also includes the authority to provide guarantees, indemnities, charges, mortgages, security interests and other ancillary financing arrangements that lenders may require.
The approval reflects shareholder support for KAPCO’s plan to invest in Attock Cement, one of Pakistan’s leading cement manufacturers. While the company has not disclosed further details regarding the number of shares to be acquired or the expected completion timeline, the financing authorization provides KAPCO with the financial flexibility needed to proceed once all necessary conditions are met.
Senior Management Authorized to Execute Financing Documents
As part of the resolution, shareholders also authorized senior company officials to execute all documents related to the financing arrangements. Any two of the Chief Executive Officer, General Manager Finance/Chief Financial Officer (CFO), and Company Secretary, acting jointly, have been empowered to act on behalf of the company.
Their authority includes negotiating and signing financing agreements, loan documents, security documents, undertakings, guarantees, notices, declarations and any other agreements or instruments required to complete the financing process. They may also take all necessary actions related to the borrowing arrangements and the acquisition transaction.
In addition, shareholders ratified and approved all actions already taken by the company’s management in connection with arranging the proposed financing and debt obligations. This ensures that all previous decisions and steps undertaken in preparation for the transaction are formally recognized by the company’s members.
The financing approval represents an important corporate milestone for KAPCO as it seeks to diversify its investment portfolio beyond its traditional power generation business. The acquisition of an equity stake in Attock Cement would provide the company with exposure to Pakistan’s construction and building materials sector, which remains closely linked to infrastructure development and economic activity.
Shareholders Approve Revised Articles of Association
Besides approving the financing arrangements, KAPCO shareholders also voted in favour of adopting a revised set of Articles of Association.
The proposed Articles of Association, presented during the Extraordinary General Meeting and identified by the initials of the Company Secretary, were formally approved and adopted by the company’s members.
The revised Articles are intended to update the company’s governing framework in line with current regulatory requirements and corporate governance practices.
To facilitate the implementation of the approved changes, shareholders authorized the Chief Executive Officer and/or the Company Secretary, acting individually, to complete all required legal and regulatory formalities.
This includes filing the necessary forms, returns and supporting documents with the Securities and Exchange Commission of Pakistan (SECP) and any other relevant regulatory authorities.
The authorization enables the company to complete all procedural requirements without requiring further shareholder approvals for administrative matters associated with the implementation of the resolutions.
SECP-Directed Changes to Be Incorporated Automatically
The shareholders also approved a provision allowing future amendments to the Articles of Association if required by the SECP during the review process.
Under the resolution, any modifications, amendments, additions or deletions directed by the regulator will automatically become part of the approved Articles of Association without the need to convene another Extraordinary General Meeting or seek a fresh special resolution from shareholders.
This approach is commonly adopted by listed companies to streamline regulatory approvals and avoid delays in implementing governance-related changes.
KAPCO Moves Ahead with Strategic Investment Plan
With the resolutions now approved, KAPCO’s management has the authority to finalize financing arrangements, complete all regulatory filings and move forward with the proposed KAPCO Attock Cement acquisition, subject to the fulfilment of all applicable legal, regulatory and commercial requirements.
The approvals provide the company with both the financial authority and corporate governance framework needed to execute the proposed investment while ensuring compliance with Pakistan’s corporate laws and regulatory standards. If completed, the acquisition would represent another significant corporate transaction in Pakistan’s listed sector and could further reshape KAPCO’s investment portfolio beyond its core power generation operations.